Question

Why buyer would prefer to buy reinsurance from hard market?

Answer 1

It’s interesting to note that even in the currently low-priced, buyers reinsurance market and with ever greater quantities of alternative and ILS capital ready to take on risk, attitudes to reinsurance and retrocession buying can differ wildly.

Currently there is a gulf between two distinct camps of reinsurance buyers, those who are retaining more risk, as they feel it benefits their bottom-line to do so, and those who are buying more reinsurance or retro, as they feel market conditions are about as conducive as they are ever likely to be. This has been well documented in recent months as the industry press increasingly refers to large re/insurers ceding less risk to the reinsurance market.


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Answer 2

buyer would prefer to buy reinsurance from hard market in order to manage risk and to get back the fund if there is any loss or damage to goods.

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